Scribd Logo
Upload

Welcome to Scribd!

  • TATA Nano Case Study

    Uploaded by

    shalin kapadia
    51 views2 pages
    Tata Nano should be positioned as a means of family transport for middle class families to achieve a sales goal of 350,000 units annually. This positioning strategy is superior because the middle class is growing rapidly in India, two-wheelers have advantages over cars, and targeting the large middle class segment will allow the company to profit from high sales volumes.

    Original Description:

    Original Title

    TATA nano case study

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Tata Nano should be positioned as a means of family transport for middle class families to achieve a sales goal of 350,000 units annually. This positioning strategy is superior because the middle class is growing rapidly in India, two-wheelers have advantages over cars, and targeting the large middle class segment will allow the company to profit from high sales volumes.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    51 views2 pages

    TATA Nano Case Study

    Uploaded by

    shalin kapadia
    Tata Nano should be positioned as a means of family transport for middle class families to achieve a sales goal of 350,000 units annually. This positioning strategy is superior because the middle class is growing rapidly in India, two-wheelers have advantages over cars, and targeting the large middle class segment will allow the company to profit from high sales volumes.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    1. What sales goal for the Nano you will recommend?

    The launch of TATA Nano was planned in 2009. Nano was considered as a entry level hatchback car. Its
    competition were Maruti 800, Alto and Zen. The data on passenger vehicles till 2008-09 is as follows
    Type of Vehicle 2004–2005 2005–2006 2006–2007 2007– 2008–2009
    2008
    Passenger vehicle 1,209,876 1,309,300 1,545,223 1,777,583 1,838,593
    Commercial 353,703 391,083 519,982 549,006 416,870
    vehicle
    Three-wheelers 374,335 434,423 556,126 500,660 497,020
    Two-wheelers 6,529,829 7,608,697 8,466,666 8,026,681 8,419,792
    Total 8,467,853 9,743,503 11,087,997 10,853,93 11,172,275
    0
    So the number of passenger vehicles manufactured in 2008-09 is 18,38,593 and the growth rate is 11%
    from 2005 till 2009. So the estimated production in 2010 will be 20,41,370 passenger vehicles. TATA
    Indica has a market share of 17% in compact cars from 2005 – 2008. The total sales of tata Indica for that
    period is as follows:

    Year Number of Cars


    Sold
    2003–2004 80,000
    2004–2005 105,521
    2005–2006 111,574
    2006–2007 144,690
    2007–2008 135,642
    2008–2009 111,254
    So the total size of compact cars in 2008 was roughly 7,98,000 cars and the size grew at a growth rate of
    9%. So in 2010, the market size of compact cars will be roughly 9,48,000 cars. Though nano wants to
    target two wheelers, most of the two wheeler costs very less than nano and also other benefits like
    maneuverability and fuel efficiency will restrict the use of nano. So the market size for nano will not grow
    more than its growth rate of 9%. As per the production problems, only 50,000 cars of nano will be
    manufactured and the rest will be manufactured with a delay of 18-24 months. I think nano should aim at
    annual sales of 3,50,000 units once the production plan is properly in place. The aim of 1 million cars
    seems to high as nano will have to capture 50% of the market share. Annual sales of 3,50,000 seems
    achievable given the market size and competition. Once there is an acceptance among consumers
    regarding nano, then tata can think of increasing the production capacity. Starting with 1 million capacity
    will involve too much capital cost which can be risky for company.

    2. How will you position NANO to achieve that goal?

    The main dilemma for tata nano positioning is between these areas:

    a. Means of family transport for middle class family


    b. Target motorcycle owners
    c. College students
    I think nano should be positioned as a means for family transport for middle class family

    3. Why is the recommended positioning strategy superior to other positioning strategies that
    might reasonably be considered?
    The middle-class section of the country is growing at a rapid rate with the percentage reaching 41% of
    total population till 2025. Also, the two wheelers provide certain benefits like fuel efficiency,
    maneuverability, and less costly than nano by a huge margin. These factors will make nano unsuitable for
    motorcycle segment. Also, since nano is a low-cost car, the manufacture margin and dealer margin are
    less than other cars. So, the company can make profits only if they target large number of customers.
    Going after a niche segment like college students might not increase the sales rapidly. This makes the
    positioning of nano as a means of family transport better than others.

    Positioning statement for Tata Nano

    To Middle class family household as a means of family transport


    (Target group and need)

    Tata Nano is most affordable compact car


    (Our brand name) (single most important claim)

    Among all the compact cars like Maruti 800, Zen, alto
    (Competitive frame)

    Because of high maneuverability, low cost to


    manufacture, low dealer margin, stylish look etc.
    (Important support)

    You might also like